COMPANY VOLUNTARY ARRANGEMENT
A Company Voluntary Arrangement (CVA) is an alternative procedure to Liquidation or Administration and can only be put into place using an Insolvency Practitioner.
It is an Arrangement to pay creditors over a fixed period. Alternatively, it could be based upon a lump sum payment being offered to your creditors. It is a legally binding agreement and if creditors agree to the proposal, your company can continue trading.
The Arrangement will freeze any unsecured debts and your company will make an affordable payment each month from trading profits.
The benefits of a CVA include:
- One affordable payment each month
- It is not publicly advertised
- The Company is repaying its debts
- The Company can continue to trade
- The Directors remain in control
However, if you do not maintain the monthly payments, the Arrangement may fail which can result in a Winding-Up Order being made.
If you would like to discuss a CVA further, please contact the office for a free consultation.